Workers who have been “on the bench” or unallocated for more than eight months without being offered a suitable position are given a more straightforward package that includes three months’ worth of notice period pay.
As the Indian IT giant reduces people in response to changing customer demands and increasing automation, IT juggernaut Tata Consultancy Services (TCS) is providing severance compensation of up to two years’ salary to long-serving employees whose skills no longer match corporate requirements.
In an effort to become more flexible and future-ready in the face of swift technological advancements, the IT giant will lay off 2% of its staff, or around 12,000 workers, over the course of the next year, according to an exclusive Moneycontrol story from July.
Those impacted and what they get
According to insiders who spoke to Moneycontrol, the reorganization mostly impacts workers whose abilities have become outdated or who have not upgraded to satisfy changing customer demands.
Employees in this group are eligible for a three-month notice period under the program, before receiving a severance compensation that, depending on duration, may vary from six months to two years’ income.
According to a source close to TCS, “the lowest severance compensation in this group is 6 months.” Workers who have been “on the bench” or unallocated for more than eight months without being offered a suitable position are given a more straightforward package that includes three months’ worth of notice period pay.
Here’s the scoop
Bench staff (unallocated for more than eight months)
According to reports, workers with ten to fifteen years of service may anticipate receiving severance compensation for around one and a half years.
In July, TCS CEO K Krithivasan also said that middle and senior-level staff will be the main targets of “one of the hardest choices” he has ever made.
Furthermore, according to reports, active roles are only being explored in limited circumstances.
Workers with more than 15 years of experience
Additionally, the exporter of IT services offers outplacement services to assist with career transitions, paying agency costs for three months, and sometimes longer for junior colleagues.
According to insiders, the business sometimes also provides funding for access to therapists or mental health help via its “TCS Cares” initiative.
Retirement at an Early Age
The corporation is also offering early retirement choices to workers whose retirement is due, according to sources. These workers will have access to all retirement benefits, including insurance, and an extra severance payout that will vary from six months to two years’ income, depending on their employment.
According to reports, the majority of the labor modifications were completed in August and September amid considerable discontent.
Employees without roles are still only being reviewed in isolated circumstances; they have the opportunity to join the Resource Management Group (RMG) to investigate roles across the organization.
Frequently Asked Questions
Who is eligible for the maximum severance?
Workers who have worked for more than 15 years and whose skills are no longer needed may get up to two years’ compensation.
Are bench workers being let go in bulk?
No, only individuals without appropriate positions who have been unallocated for more than eight months are impacted.
Other than compensation, what is the help provided?
TCS-funded treatment in some situations, access to mental health assistance, and outplacement programs.
Is it possible for workers to retire early?
Indeed, workers who are eligible for retirement may choose to leave early and get full benefits in addition to extra severance.